A modification of the Silver-Meal heuristic to handle MRP purchase discount situations

A modification of the Silver-Meal heuristic to handle MRP purchase discount situations

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Article ID: iaor1994561
Country: United Kingdom
Volume: 44
Issue: 7
Start Page Number: 717
End Page Number: 723
Publication Date: Jul 1993
Journal: Journal of the Operational Research Society
Authors: ,
Abstract:

The paper introduces an alternative approach for determining lot sizes for purchased components in MRP environments where discounts are available from vendors. This new method is a variation of the least period cost procedure, which was previously found to be a poor performer relative to the least unit cost, McLaren’s order moment, and the Chung et al. procedures. The performance of this new version of the least period cost procedure, which actually is a modified version of the original Silver-Meal heuristic, is found to be excellent relative to alternative procedures. In fact, when flexibility of the method to operate in diverse environments and computational time are considered, this modified least-period cost heuristic may be the best procedure available.

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